Angelina S.

Lao BSSW 1-1 Environmental Science 11 November 2021

Should Philippine mining stop?

"Mining is the extraction of valuable minerals and other materials from the ground," the
Mines and Geosciences Bureau said in response to numerous frequently asked questions.
According to the Philippine Statistics Authority, mining and quarrying fall under industry which
in turn is one of the economy's growth drivers. This industry has 236,000 workers and accounts
for 0.6% of gross domestic product as of 2016. Minerals and mineral products, and non-metallic
mineral manufacturers make up 4% and 0.3% of total exports in the same year, respectively. The
mining industry had a gross production value of ₱100.6 billion also in 2016, 41 times higher than
the country's daily losses due to traffic congestion. In 2015, mining tax was low at just 2% for both
metallic and non-metallic minerals. By 2018, the first tax reform package of the new
administration doubled that tax to 4%. This year, the same administration lowered income taxes
for corporations (including mining) from 30% to 25% in a bid to support Philippine economic
recovery from the pandemic. To add beef, President Duterte signed an executive order in April
lifting the moratorium on new mineral agreements – which have been in effect since July 2012.
The statistics mentioned above only represent one fiscal year, thus making those seem like the tip
of the iceberg the Philippine mining industry is all about.

The Philippines is home to the world's fifth-largest deposits of gold, nickel, chromite, and
copper. A line bureau of the Department of Environment and Natural Resources even said the
country has an estimated $840 billion worth of untapped mineral wealth as of 2012. Over and
above, approximately 30 million hectares of land area are deemed 'possible areas' of metallic
minerals. Nine million out of it possess 'high mineral potential,' the MGB added. That practically
means the entirety of the Philippines has mineral resources to offer as the total land area of the
country is also 30 million hectares. The magnitude of untapped mineral wealth we have even as of
2012 stands two times higher than the gross domestic product, at $376 billion as of 2019. As noted
in the previous paragraph, the administration lifted a moratorium on agreements in the industry –
allowing mining corporations not only to recover what they lost but also contribute to national
economic recovery in the years to come. Where do we go now? Of course, to go on and live with
the Executive Order allowing them to resume. But what about the 'social injustice' the late
Environment Secretary Gina Lopez decried about mining and its effects?
 "Sinong may pakinabang sa resources ng Pilipinas? The money doesn't even go back to
us. Siguro naman if the mining was good, hindi na sila mahirap," Gina Lopez said when she was
still at the helm of the Department of Environment and Natural Resources. This was her remark
during a press conference announcing the closure of 23 'metallic mines,' three months before
the powerful Commission on Appointments rejected her stint as secretary. In an order, the
Department under her watch not just only imposed penalties or suspensions, but closed 23 metallic
mines for failing a six-month mining audit. She cited siltation and denudation, among other
violations as a merit for the order. According to Lopez, in "any kind of economic development,
the prime consideration are the people there." She adds, "why should they suffer? So that the stock
market goes up? What’s more important—the stock market or the well-being of our people?"
Lopez's boss, President Duterte stood by her a month after the closures. "All you contribute to the
country is about ₱70 billion in taxes. We can live without it. I would rather follow Gina," the
President said. He adds, "maghanap-buhay na lang tayo ng iba, get the ₱70 billion somewhere else
and preserve our environment."

Given the video that I have watched and the additional information included herein, I don't
think Philippine mining should stop. To be impartial, her example of mining's lame effect on
poverty reduction is true, as the Dinagat Islands placed 13th out of 27 provinces in Mindanao in
terms of poverty incidence as of 2015. To start with, she set aside the recommendations made by
the mining audit review committee which prescribe penalties or suspensions. Her decision as a
secretary can only be overturned by the Office of the President. Another is she refused to show a
copy of the recommendation the committee submitted. No complete results of the audit were seen
during her announcement. She even said, "I am in no obligation to let you know what’s happening
here." Her audacity to decline from presenting a copy of the decision runs contrary to an Executive
Order on Freedom of Information Duterte signed barely seven months before. Mining association
Chamber of Mines of the Philippines (COMP) decried the 'trial by publicity' of companies for
closure, saying Lopez did not follow the procedure provided by law once an audit establishes
violations.
References:

FAQ. Mines and Geosciences Bureau. https://mgb.gov.ph/2015-05-13-02-04-38

Quintans, J. D. (2017, September 4). Mining industry in the Philippines. The Manila Times.
https://www.manilatimes.net/2017/09/04/supplements/mining-industry-philippines/348610

Parrocha, A. (2021, April 15). Duterte lifts moratorium on mineral agreements. Philippine News
Agency. https://www.pna.gov.ph/articles/1136843

Magtulis, P. (2021, April 15). Duterte ends Aquino-era mining ban in departure from anti-mining
past. The Philippine STAR. https://www.philstar.com/business/2021/04/15/2091366/duterte-
ends-aquino-era-mining-ban-departure-anti-mining-past

Miraflor, M. B. (2020, August 4). Lands devoted to farming shrink to 13.32-M hectares. The
Manila Bulletin. https://mb.com.ph/2020/08/04/lands-devoted-to-farming-shrink-to-13-32-m-
hectares

Morales, Y. (2017, February 2). DENR closes 23 mining firms, plans rehabilitation of affected
areas. CNN Philippines. https://cnnphilippines.com/news/2017/02/02/DENR-closes-23-mining-
firms-plans-rehabilitation-of-affected-areas

Contreras, A. (2017, February 10). Gina Lopez’s conscience. The Manila Times.
https://www.manilatimes.net/2017/02/10/opinion/analysis/gina-lopezs-conscience/311579

DENR shuts down 23 mining areas. Philippine Daily Inquirer.

https://newsinfo.inquirer.net/867793/denr-shuts-down-23-mining-areas

Bacungan, VJ. (2017, March 11). Duterte: I’d rather follow Gina Lopez than get ₱70B in mining
revenue. CNN Philippines. https://cnnphilippines.com/news/2017/03/11/president-duterte-denr-
secretary-gina-lopez-mining

Updated 2015 and 2018 Full Year Official Poverty Statistics. Philippine Statistics Authority.
https://psa.gov.ph/poverty-press-releases/nid/162559

Galvez, JK. (2017, February 4). Miners seek govt intervention, threatens to sue DENR chief. The
Manila Times. https://www.manilatimes.net/2017/02/04/business/miners-seek-govt-intervention-
threatens-sue-denr-chief/310425
DENR to padlock 23 large-scale mines. BusinessMirror.
https://businessmirror.com.ph/2017/02/02/denr-to-padlock-23-large-scale-mines